Bullish indicating open at $55-$60, IPO prices at $37
TACOMA/IRVINE - Columbia Banking System, Inc. (NASDAQ:COLB), a $5.08 billion market cap bank with a solid 5.96% dividend yield and 29-year track record of consistent dividend payments, and Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) announced Wednesday they have received all required regulatory approvals for their previously announced all-stock merger transaction. According to InvestingPro analysis, Columbia currently trades at an attractive P/E ratio of 9.56 and maintains a GOOD financial health score.
The merger, first announced on April 23, 2025, is expected to close on or around August 31, 2025, pending satisfaction of remaining customary closing conditions outlined in the merger agreement. InvestingPro data suggests Columbia is currently undervalued, with additional analysis available in the comprehensive Pro Research Report, part of the extensive coverage of 1,400+ US equities.
Regulatory approvals were granted by the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Oregon Department of Consumer and Business Services. Shareholders of both companies had previously approved the transaction on July 21, 2025.
"We are pleased with the overwhelming support from our shareholders and the swift and transparent approval process from our regulators," said Clint Stein, President and CEO of Columbia.
The merger will combine Columbia’s $50 billion in assets with Pacific Premier’s approximately $18 billion, strengthening Columbia’s position in the western United States. Columbia Bank is currently the largest bank headquartered in the Northwest with locations across eight western states.
Pacific Premier Bank operates throughout California, Washington, Oregon, Arizona, and Nevada, serving small, middle-market, and corporate businesses.
Columbia renamed Umpqua Bank to "Columbia Bank" effective July 1, 2025, and will begin doing business under the Columbia Bank name and brand beginning on September 1, 2025, according to the press release statement.
The companies did not disclose specific financial terms of the transaction in this announcement. For detailed financial analysis and more insights about Columbia Banking System, including 6 additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Columbia Banking System reported strong second-quarter 2025 earnings, surpassing expectations with an earnings per share of $0.76 against the forecasted $0.66. This represents a 15.15% earnings surprise. The company also reported revenue of $510.91 million, exceeding projections of $492.83 million. Despite these positive financial results, DA Davidson maintained its Neutral rating on Columbia Banking System, keeping the stock price target at $26. The financial services firm noted the bank’s progress on net interest margin expansion and cost control measures, which led to positive revisions in earnings per share estimates. These developments highlight Columbia Banking System’s operational improvements and financial performance in recent months.
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